try deactivating plugins – especially if they provide widgets.
when you click add they should be stacking up on the right (under ‘Current Widgets’) with a “Save Changes’ button at the bottom. if you don’t see that, a widget might be poorly behaved – there was a big change in 2 -2.5 how widgets are meant to operate
Thanks for the reply. This was a fresh install on someone’s eathlink account, they still had the 2.0 version available. I almost immediately upgraded to the latest version and had no plugins activated when I noticed the issue. I have since installed podpress and did try deactivating it but the problem persists. I have other installs of wordpress working perfectly on my own hosting accont with a different company.
Thanks for any help